Innovation and Commercialisation: A Business Report on Burberry

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Table of Content
INNOVATION AND COMMERCIALISATION

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INTRODUCTION.....................................................................................................................................................3
LO1........................................................................................................................................................................ 4
P1 EXPLAIN INNOVATION AND DETERMINE ITS IMPORTANCE TO ORGANISATIONS IN COMPARISON WITH
INVENTION....................................................................................................................................................... 4
P2 EXPLAIN HOW ORGANISATIONAL VISION, LEADERSHIP, CULTURE, AND TEAMWORK CAN SHAPE
INNOVATION AND COMMERCIALISATION........................................................................................................5
M1 DIFFERENT SOURCES OF INNOVATION AND THE WAY THE ORGANISATION DEVELOP CULTURE OF
INNOVATION.................................................................................................................................................... 6
LO2........................................................................................................................................................................ 8
P3 & M2 EXPLAIN THE 4PS OF INNOVATION AND EXPLAIN THE USE OF THE INNOVATION FUNNEL TO
EXAMINE AND SHAPE INNOVATIVE IDEAS AND ANALYSE AND APPLY THE INNOVATION FUNNEL IN AN
ORGANISATIONAL CONTEXT.............................................................................................................................8
P4 & M3 EXPLAIN DEVELOPMENTS IN FRUGAL INNOVATION AND PROVIDE EXAMPLES OF HOW IT IS USED
IN AN ORGANISATIONAL CONTEXT AND EVALUATE THE ROLE OF FRUGAL INNOVATION IN AN
ORGANISATIONAL CONTEXT...........................................................................................................................11
LO3...................................................................................................................................................................... 13
P5 EXPLAIN THE IMPORTANCE OF THE COMMERCIAL FUNNEL AND THE APPLICATION OF NEW PRODUCT
DEVELOPMENT (NPD) PROCESSING FOR COMMERCIALISATION OF INNOVATION.........................................13
P6 & M4 BUILD AN INNOVATION BUSINESS CASE FOR AN ORGANISATION, INCLUDING WAYS TO ACCESS
FUNDING AND BUILD A DETAILED INNOVATION BUSINESS CASE WHICH INCLUDES HOW TO MEASURE ITS
OVERALL EFFECTIVENESS USING APPROPRIATE TECHNIQUES AVAILABLE TO TEST, ITERATE AND IMPROVE 16
LO4...................................................................................................................................................................... 19
P7 EVALUATE THE DIFFERENT TOOLS THAT ORGANISATIONS CAN USE TO DEVELOP, RETAIN AND PROTECT
KNOWLEDGE AND INTELLECTUAL PROPERTY.................................................................................................19
M5 PRESENT SUPPORTED EVIDENCE-BASED EVALUATION OF THESE DIFFERENT TOOLS IN THE CONTEXT OF
THE WIDER BUSINESS ENVIRONMENT............................................................................................................20
CONCLUSION.......................................................................................................................................................22
REFERENCES........................................................................................................................................................23
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LIST OF FIGURES
Figure 1: Burberry logo............................................................................................................4
Figure 2: 4Ps of innovation.................................................................................................7
Figure 3: Innovation funnel.....................................................................................................8
Figure 4: NPD Process.......................................................................................................12
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INTRODUCTION
The report discussed the concept of innovation by distinguishing it with the term invention
along with determining its importance and relevance in the organization. The role of vision,
mission, culture, and leadership of an organization in shaping innovation and
commercialization is analyzed in the report. Various sources of innovation are examined
accompanying by an analysis of the effect of innovation on the organizational culture. The
4Ps of innovation are considered in the report by explaining the use of innovation funnel.
Further, the process required for innovation and commercialization is evaluated along with
the importance of commercial funnel. A business case for the organization is prepared in the
report by analyzing the ways of funding. An innovation business case is developed in the
report for measuring its overall effectiveness. At last, various tools required by the
managers of an organization to develop, retain and protect knowledge and intellectual
property is understood in the report.
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LO1
P1 EXPLAIN INNOVATION AND DETERMINE ITS
IMPORTANCE TO ORGANISATIONS IN COMPARISON WITH
INVENTION
INNOVATION
Innovation is the process of creating something new in the form of methods and processes
which involves a number of activities to reveal new ways of doing things (Business
Dictionary, 2019). The invention is different from innovation in such a way that new idea if
workable is known as the invention. It can be called patentable when it is certain that the
invention is novel, have utility, and is non-obvious (Business Dictionary, 2019).
Innovation and commercialization help in creating and developing new processes, ideas,
techniques and methods of manufacturing. Burberry is considered as the most innovative
company which include digital innovations at its priority. Its innovation strategies include Big
Data and Artificial Intelligence (AI) to boost sales and customer satisfaction (Marr, 2017).
Innovation is the process of changing or creating new processes, methods, ideas, and
products.
RELEVANCE OF BURBERRY INNOVATION
In today's modern and digital environment, in order to stand in the market amongst the
competitors, a company needs to adopt innovative techniques and develop innovative
process and products to cater the needs of the customers. Burberry understands the
importance of innovation and thus making continuous investments in digital innovations.
Fashion industry continuously changes its pattern which requires innovations strategies on
the part of Burberry in order to stand profitably in the market. Traditional products can be
relaunched by using innovated targeted marketing which will increase the sale and revenue
of Burberry (Rossi, 2015).
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Figure 1: Burberry logo
COMPARISON OF INNOVATION AND INVENTION
INNOVATION INVENTION
Innovation is the process of improvement
or any changes made in the existing
products or processes of the company.
The invention is the process of developing
an entirely new process or product which
has never been introduced before.
It can be derived from an existing idea or by
implementing new ideas.
It is the original idea which is developed by
the inventor which is not known to others.
Marketing, technical and strategic skills are
required for innovation.
Intellectual and scientific skills are needed
by the inventor.
The innovation process can be discussed in
the whole organization by the top
management.
The invention is a process which is limited
to the research and development
department of the company.
P2 EXPLAIN HOW ORGANISATIONAL VISION,
LEADERSHIP, CULTURE, AND TEAMWORK CAN SHAPE
INNOVATION AND COMMERCIALISATION
Innovation is very essential for companies in today's corporative world in order to stand
competitive in the market. The main purpose and aim of innovation and invention are to
commercialize the products and services of the company. Commercialization is a process of
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bringing or introducing something new in the market (Business Dictionary, 2019). The vision,
mission, leadership, and culture of a company define its success and failure.
VISION
Burberry has the vision of positioning its firm in luxury fashion along with driving its success
towards sustainable growth and high-profit margins (Johnson, 2011). The company has the
vision of increasing its average retail selling space by 12 to 13 percent by establishing 25
additional stores. The vision and values of Burberry revolve around its customers which is
striving forward for delivering strong operational and financial progress during the year.
LEADERSHIP
The leadership of Burberry played a vital role in recent difficulties at luxury fashion brand
Burberry (Thomas, 2017). The management of Burberry changes after Christopher Bailey
joined the company. Burberry has highly successful digital leaders who are making
continuous innovation in the digital sector of the company (Jordan, 2019).
CULTURE
The culture of Burberry include employees of different regions and localities where the
company ensure diversity and equal opportunities for the employees. Burberry has a unique
culture which includes 10000 of global employee population with 70 percent female and 30
percent male employees.
TEAMWORK
Burberry provides many opportunities for team building to enhance cross-functional
connections in the whole year. The company has clear faith in the teamwork which helps in
attaining success. The cross-functional connection of the company helps it in introducing
different innovations in products and operations.
M1 DIFFERENT SOURCES OF INNOVATION AND THE WAY
THE ORGANISATION DEVELOP CULTURE OF INNOVATION
Innovation has become an essential feature of a successful company which helps in raising
sales, increase customer loyalty, attract new customers, and build more revenue for the
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company. There are different sources of innovation which can be used by the managers and
leaders which are explained below:
THE INCONGRUITY
Incongruity is the situation where the company is unable to fulfill the demand of the
customers for the products which are not available in the market. This situation needs
innovation on the part of the company for developing the products according to the special
demand of the customers. Burberry makes continuous market research for searching new
demands of the customers and make innovation accordingly.
THE UNEXPECTED
It is another source of innovation where the managers constantly study the market to find
out various opportunities for unexpected options of success by fulfilling the demand and
needs of the customers. Globalization and digitalization have developed many unexpected
scenarios for the business organization which can help Burberry in meeting the expectation
of its customers.
CHANGES IN PERCEPTION
Changing the perception of the customer's help in developing many innovative ideas for the
demands of the customers by the company. Burberry has modified its traditional fashion
products by keeping in mind the perception of the customers. Change in perception is
common which motivate managers to make subsequent changes in the services and
products offered by the company.
INDUSTRY AND MARKET STRUCTURE CHANGE
With the change in the industry and market structure, the regulations related to the
products offered by the company also changes. Due to the change in the regulations which
are applicable to the product of the company requires innovation. Burberry can resolve
many technologies and structural problems which arises due to market and industry change
with the help of innovation (Swaim, 2011).
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LO2
P3 & M2 EXPLAIN THE 4PS OF INNOVATION AND
EXPLAIN THE USE OF THE INNOVATION FUNNEL TO
EXAMINE AND SHAPE INNOVATIVE IDEAS AND ANALYSE
AND APPLY THE INNOVATION FUNNEL IN AN
ORGANISATIONAL CONTEXT
The 4Ps of innovation is also known as the innovation mix which is model developed by John
Bessant and Joe Tidd. The model help in describing the innovation process of the company
which can improve the business. Following are the description of 4Ps of the company:
Figure 2: 4Ps of innovation
PRODUCT
The product includes goods, services and other things offered to the customers by the
company in order to fulfill their needs and demands. Burberry provides a wide range of
products which has different segments for beauty, accessories, men, women, and kids. The
product strategy of the company include products from fragrance range such as Burberry
Touch, Burberry Weekend, and Burberry Brit.
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PROCESS
The process of a company include all the activities undertaken by it for manufacturing a
product or service for the customers. Process innovation involves various steps taken by the
company to improve the processes to make it more effective, quicker and cheaper. This
innovation can help the company in increasing its profitability and promotes growth.
POSITION
The position is called the psychological category which is dependent on the perception of
the customers about the company. This area of innovation keeps on changing according to
the viewpoint and opinion of consumers. The re-positioning strategy can be used for
changing the perception of the customers. Burberry is asking continuously for feedback
from the customers through digital techniques which is a part of position innovation of the
company.
PARADIGM
Due to increasing changes in the market and industry, the pattern change is required for the
change in the processes, products and the service of the organization. These changes can be
a result of obsolesce of the existing technologies of the company.
THE INNOVATION FUNNEL
An innovation funnel is a tool which helps in describing the evolution or development of
product and processes of the company. It helps in selecting the most appropriate innovative
idea for the products and services of the organization. Following are the three main steps
which are involved in the process of innovation funnel:
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Figure 3: Innovation funnel
Generating ideas
It is the first step in the process of innovation funnel which includes increasing the
knowledge and information base of the company. With the help of the information, the
company is able to generate various innovative ideas for its products and services. The
objectives of the company need to be clear in order to work fast at this stage.
Screening the idea
The different ideas which were generated by the company in step first are put on screening
to evaluate their relevance. The risks and return of selecting a particular idea are measured
in this step. Burberry measures its options by keeping in mind the customer's expectations
and needs in order to improve the performance of the company.
Final selection of idea
At last, the most promising alternative is selected by the company after completing its
screening successfully. Resources are allocated to the best opportunity and attractive idea
to use them for greater returns. Burberry can get a competitive advantage over its rivals by
selecting the most successful option of innovation which is matching with its objectives
(Martin, 2016).
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