BT's Innovation Strategy: Commercialising VR Technology in Smartphones

Desklib provides past papers and solved assignments. This report analyzes BT's innovation and commercialisation of VR smartphones.

Innovation and Commercialisation
1

Table of Contents
Introduction................................................................................................................. 3
LO1............................................................................................................................. 4
LO2............................................................................................................................. 7
LO3........................................................................................................................... 10
LO4........................................................................................................................... 16
Conclusion................................................................................................................ 18
Reference List...........................................................................................................19
2

Introduction
British Telecommunications is a British multinational telecommunications company
with headquarters in London UK. It was introduced in 1980.On 19 July 1982 the
government sold its shares to the BT organisation and it became a public limited
company. However in 1990 the BT company entered into joint ventures with Irish
Telecommunications with the name of Ocean.. It introduced the subscription free dial
up ISP. The venture received limited success. The target audience of this venture
was corporate customers. BT acquired 100% of the venture in 1999.BT offers
consumer fixed line voice and other services like broadband services in UK. BT also
offers the largest mobile networking services in UK.BT is the second largest
organisation who offers services of Television sports broadcast in UK. BT UK
provides ICT services 5,500 multinational companies in 180 countries.BT UK also
has a record of providing services to 12 million homes till 2020.It aims at improving
service quality and increasing consumer satisfaction.
3

LO1
Explain the context for innovation and determine the difference between
invention and innovation
Innovation means the beginning of producing latest thoughts and ideas. The latest
thoughts and ideas are translated methodologically into products that cater to the
company’s social image and economical extension (Sancha, et al., 2016). It includes
various operations like organisational, commercial, financial and technological.
The dissimilarity that innovation and invention has is mentioned below:
Innovation Invention
To fashion a better, advanced solution
that satisfies the requirements of the
present market
To create something, having the form of
typically any product, process, concept
or device
This requires capability, technical
understanding, monetary backup and
clear knowledge about what the market
currently needs
This also needs capability, financial
support as well as a clear vision
Instances of innovations are TV, Tablet,
flat screen, iphone etc.
Instances of invention include press,
telephone, electricity, printing etc.
Table 1: Difference between innovation and invention
(Source: Created by the learner)
The advantages of VR authorised Smartphone are given below:
Expanding customer engagement – if Smartphone is authorised with VR, the
consumers will be more engaged (Harmeling et al., 2017). They will also increase
their interaction with the phones. This will automatically create a larger requirement
of utilizing of advanced technology.
Defeating the information inconsistency – The data that telecommunication
companies gather about their consumers and their usage of phone is not enough.
Though collected through research, it needs adequate information. A VR authorised
customer service will defeat this. It works as a Chatbot. This is functioned to answer
various requirements and enquiries of consumers (Peppers and Rogers, 2016).
Commercialization by gaining attention – The VR authorised technology provides
experiences of 3D reality this is provided with its AI tracks where a customer can be
engrossed deeply. This strategy can increase the rate of sales of those Smartphone.
The perception of British telecommunication is to get the leading position in
communication (Noh et al., 2016). They want to achieve it by progressing and
connecting to the whole world.
4

The perception of innovation can guide the leaders along with the team members
they will be developing new ideas. They have untraditional thoughts. This
encourages the organisation for achieving higher risks. It will push its members to
think about the unique ways.
Several origins of innovation are stated below:
Unexpected - The Company needs to analyse the market. It should judge the
demand. They should have information about the demand of services that are being
produced less. Thus the company exploits the ways of utilizing unexpected success
(Busco, et al., 2015).
Incongruity – The Company look for perfect timing and they should bring new
products. If there are discrepancies in the market, the scope of launching new
innovative products to the market is very high.
Process need – The Company locates the weak points in their products thorough
inspection. Needed alterations and redesigns are done. The weaknesses and made
stronger.
Change of market structure – The organisations anticipates the changes in market
requirement. They take proper steps to deal with the changes. These changes have
frequent occurrences. They may be either beneficial or effective.
Demographics – The place where the consumers are located has direct effect on the
marketing of any product. The preferences and requirements of the consumer differ.
The product’s availability also affects the needs. Where there is lack in production of
services, the company should deliver adequate products.
Perception change – The Company strives to challenge the old perceptions and
ideas that are deeply rooted in the current market. They try to change the notions of
people. They make better, satisfactory products. These have the ability to change
the view of common people.
New knowledge – The company should always try to incorporate new information
into their technologies. It is integrated within the consumers based upon the sphere
of common interest.
To form a shape and customs for innovation, British telecommunication always
should develop the structural environment to justify the need (McDonald and Wilson,
2016).This can be achieved by interacting with all the departments. The sessions
should be very open. There should be a comfortable environment. Potential
proposals need promoting. The company gives rewards for innovation.
Managements and team members come up with these innovations. Company should
have an inbuilt team of talented people.
Three things are viewed for critical analysis of how it is structured, measured and
incorporated.
 At the time of developing the VR authorised Smartphone, a talented and well
organised team should be provided. They must have special technological
support from different areas of specialization. These areas are designing,
5

programming as well as other fields. But along with beneficial side of having
this team of specialisation, many drawbacks are also seen. There will be
diverse ideas that can clash. This may give rise to problematic situations.
 The company should be able to integrate new systems like internet of things
and AI technology. This increases rate of VR experience. This step can be a
latest leap for technological development. This gives rise to the implications of
high financial inference.
 The innovations and their effectiveness are measured by the amount of sales
(Ingram, et al., 2015). The company needs to study various determinates of
sales. These determinates can hugely affect the increasing and decreasing
amount in sales. The effect upon the customers can be internal or external.
The internal effect means the psychological one. The desirability of products
among the customers can be identified as psychological effect. The external
effect includes the rate of availability and distribution of any new product. The
former distribution chain is always affected by the entry of any new products.
For Smartphone with VR authorisation there will be a clear effect on the
psychology (Matz, et al., 2017). The customers have direct interactions
through their phone. Nevertheless, the external effect will not be so much.
The process of distribution will be same, as no alterations will happen to the
transportation process and the size of the phone. This will cater to the overall
developing scenario of the company in current market situation. The
customers will be happy and satisfied after using the product.
6

LO2
Explain the different types of innovation
For British Telecommunications the four Ps of innovation are:
Paradigm
Through improved systems of networking and connectivity, BT provides a better
quality of service. As a result, the customers are satisfied by the services and it
increases the demand. BT provides higher connectivity in terms of speed and
consumption time at lower costs. The design of such services in terms of innovation
determines the model. This model of services determines the customer’s interest.
This model is often influenced by the various strategies and decisions taken by BT in
creating innovation.
Product
This process involves the identification of the product design in terms of temporal
value and the target audience’s need factor. The product design involves which
product or service features would create high demand and what are the methods of
designing such services with greater functional capacity. BT provides various data
rates for mobile apps and utilizes resources like entertainment resources involving
music, visual and informational resources. The target markets for such services
involve people from marginalised background in terms of financial access. In this
way by providing the services of British Telecommunications in affordable rates BT
increases its customer base and service quality (Taalbi., 2017).
Process
The process of designing innovative services depends on the customer base to be
addressed. The pricing of the services and the decisions made also depend on the
kind of the product demand and its ability to satisfy the majority of the target
audience. BT through low price decisions and data protection services associated
with mobile technologies determines the customer base. The process of designing
the innovative services by BT also depends on the complexity of the services and
the costs and revenue generated. BT has diversified in order to sustain with the
existing competition (Noh et al., 2016)
Position
The brand image or position of BT depends on the purposeful business strategies.
The reputation as an established organisation of BT is primarily due to the approach
or process used to generate innovative services. The primary factor of BT is to follow
various rules and regulations while designing the services in terms of quality, data
productivity and environmental stability. Thus, it is proved by studies that improving
the productivity of the citizens help in developing the global economy. BT has
arranged for digital services from the year 2014 in order to increase its customer
base. In this way, BT promotes greater digital literacy (Kleyner and Babkin, 2015).
7

Services for charity
Some of the charity services include:
Sharing of skills
BT helps in sharing the existing knowledge of many people with the charities through
volunteering. Thus BT reduces the gap in volunteering and achieving the purpose to
create wider awareness of other organisations.
Providing technology
BT community provides a scope to smaller charities in using developing, organising
and creating their own websites by equitable distribution of digital technologies.
Frugal innovation
Frugal innovations of organisations are subject to the national boundaries. It
depends on the global economy of the nation. Frugal innovation of products and
services mean the process of assigning lower costs of production of various products
and services than their requirement. This process of frugal innovation involves
improving the quality of services with limited resources. This technique is followed by
BT, this helps in reducing the costs of service design and generating more revenue
with higher outcomes. This also helps in generating innovative ideas of services that
would appeal the consumers’ interest
To develop a strategy of frugal innovation, BT makes a planning to achieve the
objectives in the following steps:
Identification
Through the process of identifying the scale of economies that are more productive
in relation to service quality design helps in determining the budget of the
implementation of the service. This in turn determines the evaluation of the service
by making possible estimation of the rate of the return, which is achievable. This
innovation requires the knowledge of the skills needed to develop innovative ideas
for increasing the scale of its services in terms of quality and reach to its customers.
Problem deduction
Through this process of identification of the various existing services in the current
market BT, UK aims at diversifying its service design for the purpose of attaining a
large target market at a lower cost. BT through various additional services to its
original service of telecommunications increases the reach of its target market at
lower cost. The above stated knowledge needs to be utilized in order to determine
the opportunities and threats of other organisation. In this way the information
resources of other organisations can be utilized to determine the strategies of BT,
UK.
Pattern deduction
BT, UK by identifying the target market to be addressed as students and
unemployed youths helps in enrolling for courses at various educational institutions
8

and in making job applications. This enables the students and job aspirants in being
relieved of paying initial registration fees. On the other hand, BT UK, by providing the
opportunities to the students and aspirants receive commissions from the various
educational institutions and organisations platforms. The kinds of services to be
provided to students and adults and the demands of the same determine the
innovative service idea required to generate the design (Hahn, 2015)
Pattern System deduction
Through the various processes of frugal innovation and problem, deduction and
allocation in determining the quality and demand of the service can be used to
promote the technology of BT, UK. These techniques ensure the quality of the
service potentially identified when tested by consumers. The experience variation
among the consumers and consumer satisfaction determines the areas of research
and development required by BT in terms of service features for future scope of BT,
UK (Ibarra et al., 2015).
9

LO3
Discuss the process required to commercialise innovation
The importance of the commercial funnel:
One of the tools of sales funnel is the commercial funnel, which is used by BT UK, to
identify the needs of the customer’s service. The commercial funnel comes to
existence if the following steps are taken here:
Awareness
BT through various promotional medium like social media and television media
generate brand awareness and desire for such services among consumers. These
media convey the various advantages of the service features.
Interest
BT, through increasing the experience among existing customers by using various
offers generates interest among customers.
Decision
In this way BT generates more choices made by consumers in utilizing the services..
Action
BT stimulates more demand for such services by advertising the service features in
a convincing way.
Figure 1: Commercial Funnel
10

(Source: Created by learner)
Application of New Product development
Figure 2: Stages of NPD
(Source: Created by learner)
Stages Description
Idea Generation The identification of the areas of
research required for service quality
innovation in terms of technology by BT,
is the basic idea of service innovation.
Idea Screening The various concepts of generating
innovative service in terms of the
requirement of the customers in relation
to quality and costs determine the
techniques of implementation of the idea.
Concept optimization This stage investigates the value of the
concept in terms of service design. This
will ensure the implementation decision
of service design of BT.
Ethnography The demographics of target market or
the ethnography determines the various
strategies of marketing to be taken by BT
in order to increase its market base. This
also ensures the kind of service features
to be developed.
Business Analysis The various allocations of the costs of
designing services and the pricing
strategies to be used depend on the
service design features and the target
11

market to be tackled (Ganesan and
Sridhar, 2016).
Co-creation By the feedback derived from the
customers on the quality of the service of
BT, it can develop the features of the
services in terms of redesign. This is
based on the consumer experience of
the service (Liu et al., 2018).
Commercialization In the final stage of the service
development of BT, the service features
are presented in a way that conveys the
benefits to the consumers. Based on the
value of the services the sales value is
determined.
New Product Pricing The product is priced not in relation to
the costs incurred while designing the
service quality in terms of technology but
also in terms of the convenience of the
target market.
Table 2: Application of NPD
(Source: Created by the learner)
Details of Products/service
The British Telecommunication UK is launching a new model smart phones that
enables the VR facilities. VR means the Virtual Reality it has a new innovative in
order to grow the market in the world base and in the UK, it basically a computer
simulations that gives us to access the three dimensional figures in the same
environment. The working of the smart phones has starts to get the premium looks
and they enabled the special specifications in order to build the product that helps to
commercialize the market in the profitable way. The phones have to be designed in
such a way that the customers can avail the features of 3D in their smart phones.
These phones should operate on specific software with a specialised device in order
and that is operate by the same software based (Rix et al., 2016).
Assessment of the market opportunity
In order to make the profit the British Telecommunication UK, used to look for the
market opportunity. Market uses the upgraded technologies to maintain the sales
profit of the company. In every field technologies helps to build their sales profit. The
telecom industry tries to embed the Artificial Intelligence features in order to grow the
productivity in the market. VR technology helps in developing the market and way of
operating in the new and the innovative ways. That helps in building the profit in a
world base (Rosedale 2017).
12