Innovation Management in Burberry: Performance, Capabilities & Trends

This report provides an evaluation of Burberry's innovation history, existing innovation performance, and capabilities. It highlights Burberry's focus on innovation and its ability to adapt to market trends. The report discusses the company's history, its innovative products like Gabardine, and its digital transformation efforts, including online sales and the use of AI and machine learning. It also examines the key trends in the fashion industry in 2021, such as digitalization and sustainability, and how Burberry is leveraging these trends to maintain a competitive edge through digital platforms, eco-friendly practices, and customer-centric marketing strategies. The company's ability to operate during the lockdown and its development of a reality shopping tool through Google Search are also discussed, showcasing its commitment to innovation and customer satisfaction.

Managing Innovation
in Business

Executive summary
Innovation refers to introducing a new ideas or introducing the new way of doing a
particular work. Innovation means practical doing or an implementation of a new idea. It can be
a product or can be a service. Innovation also includes invention of new products or services in
the business. Innovating new products or services results good when customer is willing to pay
for that product or service. Regards to the businesses innovation is very necessary as it creates
values for the business and also helps the business to grow by earning more profit. In a business
it is necessary to introduce new products and services which helps business to compete in the
market. Innovation also helps in the faster growth of the business as innovation helps is
increasing the sales that ultimately results in more profit. There is continuous change in the
trends, by innovating new products or services it helps business to kept relevant to the market.
There is need of conducting research as helps the company to know about the situation of
external market and need of innovation. This report has evaluation related to the innovation
history of the business organisation. There is evaluation of the existing Innovation Performance
and Capabilities of the organisation. There is need to manage the company as per the trends
present in the market. Therefore, there is discussion related to key trends of industry in 2021.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
The Organisation & Industry Overview..........................................................................................4
About the company and its innovation history...........................................................................4
The Organisations existing Innovation Performance and Capabilities.......................................5
The Industry in 2021...................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES:.............................................................................................................................10
Books and Journals...................................................................................................................10
Online........................................................................................................................................10

INTRODUCTION
Innovation can be defined as the process of adding features to the product, process, ideas,
existing approach of the company. It plays a major role in operating effectively and attaining
competitive advantage (Biemans, 2018). The business organisation must carry on regular
research and analyse the trends so that they are able to gain edge over the competitors. This
report is based on Burberry. It is one of the famous British luxury fashion house that has its
headquarters in London. There is discussion related to innovation adopted by Burberry. The
innovation history of the company is discussed. Afterwards, the existing performance and
capabilities are also being examined. In the end of this report, the industry trends are being
analysed.
MAIN BODY
The Organisation & Industry Overview
About the company and its innovation history
Burberry was established by Thomas Burberry in 1856 which is headquarter in London,
England. It is a British fashion store which offer luxury products including leather goods, ready-
made wear, eye-wear, cosmetics, fragrances, footwear and accessories. It is famous for selling
trench coats. Burberry focus on producing high quality outdoor attires. Its first shop which is
situated in Haymarket, London was started its operation in 1891. It was one of the luxury brands
with value of 3.9 billion US dollars. It has global presence and its stores are located on 421
locations. They also provide services through online websites which are highly trendy and
fashionable. Burberry started its online sale in US and after that in UK (Burberry, 2021). They
believe in innovation and creative ideas for their products as they keep on upgrade their
technologies of production. Major production of Burberry takes place in Italy and some of the
products also manufacture in Scotland, China, France, Germany and Korea. Many upper class
people prefer Burberry brand over the other brand because of the fabric and material. Their
products are manufactured under strict control of supervisors of Burberry. Their designers form
creative layouts for products with the help of new technologies. They highly focus on the current
trends of the society for the production.
The company works on analysing the trend in market audit helps them to attain
competitive position in the market. The company started its operations in 1856 and is working on

their innovation strategy since then. The company opened their own store in England. Innovation
plays a major role in the success of the company. They focus on innovating their products and
services on regular basis so that they are able to cater the needs and wants of the customers.
Innovation is at the heart of Burberry and is a leading player in fashion industry. Gabardine is the
innovative product that was invented in 1879 by Thomas Burberry. Before that the products
given by company were heavy and uncomfortable. The company kept on doing several explorers
and one of them was polar exposer (Janjić and Rađenović, 2019). They were able to analyse that
the customers need protective and light weight clothes. The company always understands the
needs and wants of customers and then work on bringing innovation. The trench coat offered by
the company was designed to serve the purpose. It was developed for for the military, epaulettes
displayed the rank of officers while the gun flap, buttoned at the chest, provided additional
protection. The company works of developing each product with professional artisans and
different production processes.
The major changes took place in 2006, the company started operating online. By having
digital presence the company was able to enhance their brand image in market. The price of their
stocks also rise at that time. They were able to attract new customers and engage them towards
the organisation (Tidd and Bessant, 2020). There was makers house being conducted in 2016. In
the show, there was run away of for the first time of men's and women's collections. The
company works effectively on the innovation and this makes them successful.
The Organisations existing Innovation Performance and Capabilities
Innovation is the process of development that is being used by the business organisation.
It is important for the company to carry on the process of innovation as the company is able to
retain the customer’s and serve them effectively. Innovation is in the heart of Burberry and they
use the same in order to attain advantage. It is beneficial for the company to keep on adding
features to the products of the company (Peterková and Zapletalová, 2018). There is requirement
of carrying regular research as it makes the company more successful. The changes in
technology as it updates on regular basis. It is necessary to use the latest technology and attain
success. It is a multinational organisation and works to know about the changes in the trend. The
use of latest technology makes effective brand image in the market. The company has effective
research and development team that works to know about the scenario in the market. By
knowing about those trends the company is able to form new strategies. The company is able to

use expertise and knowledge in order to enhance their own performance. The innovation
performance and capabilities of Burberry are as follows:
 The research team of Burberry is most effective and that helps the company to bring in
regular innovation. The use right technique of research helps the company to know about
the trend in market. The company analyses the needs and wants of the customers and that
assist them to add the features to the product (Hofer and et.al., 2020). Burberry is able to
provide quality and trendy clothes to the customers that add value to their portfolio. The
customers prefer the company due to the innovational strategy attained by the company.
 The use of artificial intelligence is being done by the company. The company is able to
identify fake and counterfeit products. The use of artificial intelligence is advantageous
for the company and its growth. The use of AI helps the company to save time and
money for the benefit of the enterprises. It helps Burberry to optimise routine processes
and task in proper manner. This helps the company to take effective decisions that attract
the customers towards the brand and serve them properly.
 The company uses machine learning in order do customer centric marketing efforts. By
taking care of the customers the company is ale to enhance their experience and let them
achieve success (Mousavi, Bossink, and van Vliet, 2018). The Burberry is able to
simplify the product marketing and it helps the organisation to make sales forecast. By
using the best marketing strategy, the business organisation is able to attain growth and
success.
 The use of online platforms helps Burberry to enhance its existence on social media
platforms. The company is able to earn high return investment and measure the success in
proper manner. The use of right tools of digital marketing is cost effective for the
company. It becomes easy to measure the performance of the business organisation and
reaching the customers properly (Tiwari and Buse, 2020). The company has presence of
over social media platforms, use search engine optimisation, content writing. The trend is
shifting towards digitalisation and for this reason the company is also using tools in
proper manner. The reach of Burberry enhances due to the integrated digital marketing
strategy. The proper channels will be beneficial for the enterprise and its development.
 Burberry is able to carry on its operation at the time of lock down as well. The company
worked through their digital stores so that the work can be managed. By having proper

operations a business organisation is able to use contactless delivery as well as payment
so that the customers are safe (Szutowski, Szulczewska-Remi and Ratajczak, 2019).
Burberry works in proper manner and assures that the the customers are able to get
products and services in order to enhance their overall performance. The use of right
tools and techniques make the customers loyal for the company and reach more and more
customers.
 Burberry has developed reality shopping tool through Google Search technology. It is
developed to imagine the experience of clothing by using and allowing the customers to
fashion label around them (Burberry transforms customer experiences through digital
innovation, 2021). There is need to work according to the latest trends so that success can
be attained. Burberry works in proper manner so that they are able to satisfy the demand
if the customers. The use of best technology makes the company powerful and
successful.
The Industry in 2021
Fashion industry is continuously evolving and growing at good rate. There is need to
know about the latest trends and adopt them in order to serve the needs and wants of the
customers. The marketing is dynamic and the trends are changing so use of proper research
makes the company successful. The trends of fashion industry in 2021 are as follows:
The Role of Digitalization: The role of digitalisation is enhancing in the current time.
There is need of using best and latest technology in order to reach more customers. Due to the
situation of pandemic the business organisation in fashion industry have adopted the use of
digital platforms (Guerra Guerra, ed., 2018). There is rise in sales of the company due to use of
effective channels and digital platforms. There is need of assuring that they provide fashionable
clothes to the customers and satisfy them. The company's are able to reach more and more
customers by using digitalisation.
The Importance of Sustainability: The brand in fashion industry have also started using
sustainable practices. There is need to use eco-friendly practices that are beneficial for the
growth and success of the company. There is need to become economic friendly and use their
products and services so that the harm to environment can be minimised. There is need to make
their designing practices in such a manner that quality is maintained and no harm is being caused
to environment (Tiwari and Buse eds., 2019). It also helps the company to attract more and more

customer’s and retain them in the company. The use of sustainable fashion is now in trend and
the company is able to work in proper manner.
The time was related to Covid-19 pandemic and the use of digitalisation enhanced at that
time. The fashion industry used various e-commerce platforms that help them to enhance the
sales of the company. They were able to reach more and more customers by use of right channels
of marketing. The company must work according to trend in market. The business organisation
working in fashion industry were able to use the digital platforms to reach the customers and
make them aware about their brand. The use of quality and sustainable products will make the
company more successful. It is necessary to work on the sustainability and reach more customers
for benefit of the sector.

CONCLUSION
From the above report, it is concluded that the business organisations must use innovation
in order to operate effectively in the market. The use of innovation helps the company to gain
lead over other firms operation in same market. The use of research is necessary for the company
and its success as it makes the firm efficient. The use of latest technology helps to attract more
customers. In this report there is evaluation related to the organisation and its innovation history.
At the same time, the current capabilities of the company are being evaluated so that the idea of
innovation can be understood. In the end, the report has discussion related to the trends in
industry being observed in 2021.

REFERENCES:
Books and Journals
Biemans, W.G., 2018. Managing innovation within networks. Routledge.
Guerra Guerra, A. ed., 2018. Organizational transformation and managing innovation in the
fourth industrial revolution. IGI Global.
Hofer, A and et.al., 2020. A framework for managing innovation cycles in manufacturing
systems. Procedia CIRP, 93, pp.771-776.
Janjić, I. and Rađenović, T., 2019. The importance of managing innovation in modern
enterprises. Ekonomika, 65(3), pp.45-54.
Mousavi, S., Bossink, B. and van Vliet, M., 2018. Dynamic capabilities and organizational
routines for managing innovation towards sustainability. Journal of cleaner production,
203, pp.224-239.
Peterková, J. and Zapletalová, Š., 2018. Evaluation of the usability of selected innovation
concepts for managing innovation activities.
Szutowski, D., Szulczewska-Remi, A. and Ratajczak, P., 2019. Managing innovation processes
in industrial sector. Qualitative study. Economic research-Ekonomska istraživanja,
32(1), pp.282-300.
Tidd, J. and Bessant, J.R., 2020. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Tiwari, R. and Buse, S. eds., 2019. Managing Innovation in a Global and Digital World:
Meeting Societal Challenges and Enhancing Competitiveness. Springer.
Tiwari, R. and Buse, S., 2020. Key issues in managing innovation in a Global and digital World:
an introduction to the Festschrift in honor of Cornelius Herstatt. In Managing
Innovation in a Global and Digital World (pp. 1-13). Springer Gabler, Wiesbaden.
Online
Burberry transforms customer experiences through digital innovation, 2021. [Online] Available
through: https://www.luxurydaily.com/burberry-transforms-customer-experiences-through-
digital-innovation/
Burberry, 2021. [Online] Available through: <https://www.burberryplc.com/en/company.html>