BTEC HND Business Innovation and Commercialisation: Dyson Report

This report analyzes Dyson's innovation strategy, focusing on new product development and commercialisation. It explores the importance of innovation for Dyson, covering topics such as invention vs. innovation, competitive advantage, and organizational vision. The report examines the different sources of innovation, including unexpected events, incongruities, and changes in market structure. It critically analyses how innovation is developed and embedded within Dyson, highlighting the use of incremental and radical innovation. Different types of innovation are discussed, including incremental, disruptive, architectural, and radical innovation. Dyson's organizational vision, leadership, culture, and teamwork are also examined in relation to innovation and commercialisation. The report uses Dyson as a case study to discuss innovation management and the importance of new products in the market.

ICON College of Technology and Management
Faculty of Business and Management Studies
BTEC HND in Business
Innovation and Commercialisation
Tutor: Dr. Svitlana Shevelova
Submitted by:
Full Name: Rayheana Pervean Chowdhury
ID No: 17828
Session: September 2020
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Contents
Introduction:..................................................................................................................................3
LO2.................................................................................................................................................12
LO3.................................................................................................................................................17
LO4.................................................................................................................................................23
Conclusion...................................................................................................................................31
References...................................................................................................................................32
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Introduction:
The report aims to determine the importance and demand of innovative products
and their introduction to the market. In order to measure the number of new
products, we will discuss the following topics. It also mainly discusses all
inventions, innovations and functions related to sales.
The report applies to Dyson Co., Ltd. create. in England. As an innovation
manager, you want to make sure that new product development is the direction
the company is heading. This is mentioned in LO3.
Figure 1
Dyson is a technology grounded inventive company in UK. They produce and
developed mainly household efficacies, such as vacuum cleaners, hair dryers,
bladeless fan and heaters. The company was founded by James Dyson in 1978 and
has thousands of customers worldwide.
Dyson Ltd. This is a good example of a new, modern, and innovative company that
has benefited from government improvements and provides unique and useful
products
LO1.
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There are many ideas about innovation, and it is impossible to give a
specific definition of innovation, but some of them are the most common
and acceptable:
"Innovation is regarded as a way to change an organization, a response to
changes in the external environment, or a positive movement to promote the
environment and the situation" (Damanpour, 1991).
Innovation is the implementation of the latest ideas and ideas to bring new
business results to companies that aim to improve internal business strategies
and systems and create market-oriented products and services. "Plessis 2007, p.
21)
Innovation: This is the act of "rebirth" or "change" that has been invented into
something new. It can be an idea or thought, product, service, know-how or
process. Innovation can be described as the range from incremental innovation to
radical innovation. Incremental innovation is usually the improvement of known
technology, while radical innovation is the emergence of new things that break
people's popularity.The convention is that innovation must be in order to be
introduced and/or sold to someone (ie customers, society and company) at
current prices (Thomassen, Løje & Basaiawmoit, 2020).
Difference between invention and innovation:
The variance among innovation and invention stated below
Basic of
compression
Invention Innovation
Denotation Invention is the
discovery of new
tools, concepts,
and developments.
Only a new
discovery can be
considered as
invention.
Innovation is the
process by which
an invented
product or service
or technology is
developed.
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Idea An earlytips and
normally it works
theoretically.
Change the theoretical
idea and proposal in
the shape of physical
and brings its reality,
Location Normally invention
carried out some
specific places such
as Universities and
Laboratories.
Mostly innovation
occur in firms or in
industries in a
commercial
atmosphere.
Patronage Most of the invention
and its process
including all the
expenses bear by the
government.
Most of the innovation
and its process
including all the
expanses bear by the
private organisation.
Goals and objectives The main intention for
invention is the avail of
human being as well
as the nature and the
all creation.
Besides the avail of
human being there are
another main intention
to gain profit.
The importance and benefit of innovation and new products to Dyson:
Dyson is one of the most famous innovative companies in the UK. Dyson's core
mission is to develop and invent new products to become a market leader and
maintain their leading position through innovative products. This is why Dyson
has been looking forward to new products.
Before the explanation, here’s a brief look about the importance of invention,
innovation and new product that will help to understand the importance of new
product for Dyson.
Scientifically speaking, invention is the mother of innovation and a basic product.
Without invention, science cannot help us. It is always associated with new
processes, research, ideas or tools (the meaning of invention and innovation,
2020 ).
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The important thing is that the invention is only related to the attributes of the
product, its nature, its model, etc. However, innovation involves the development
of an invention and sometimes changes the rules of the game in the business (
"Innovation Beats Invention", 2020).
Competitive advantage:
For the company, innovation provides an opportunity to control market share so
that it can stay ahead of the competition. Customer satisfaction is one of the core
strategies of market advantage. (Kylliäinen, 2020).
Increase productivity:
Modern technology helps to improve product quality and reduce production costs,
thereby helping to increase productivity (Kylliäinen, 2020).
Positive impact on company culture:
Can aid in constructing a lifestyle of incessant knowledge, increase their private
progress. such form of modern environments can encourage humans to enhance
the manner of their group work continuously. (Kylliäinen, 2020).
Differentiate themselves:
Innovation of new product can differentiate any organisation from the others
For example, when a company launches a new product with the same
performance as other products, it can attract customers (The Importance
of Business Innovation, 2020).
It can be found during the history of Dyson that Dyson (entered in the market with
its bagless vacuum cleaner) establish itself as an innovative company by its
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bagless vacuum cleaner, vacuum cleaner is a well-known product in the market
but bagless vacuum cleaner is new more effective and able to fulfil the needs and
wants of customer more than others as a result Dyson becomes a markets
leading company. It may be mentioned that Dyson’s super sonic hair dryer also
become a hot cake and share 25% market of this sector. And according to
Bloomberg dated 16th December 2020 its revenue rise 23% more than previous
year and become £5.4 billion. (Pfeiffer and Stupples, 2020).
57% of the sales of Dyson products are 2.5 billion U.S. dollars, and the net
income is approximately 350 million U.S. dollars. Dyson spends 47% of its
sales on research and development. The company aims to become a
market leader. 71% of its sales come from all types of bagless vacuum
cleaners. As a result, Dyson needs new products (Sorvino, 2020). That’s
why the importance of new innovated product to Dyson become the top
priority.
A brief explanation about organisational vision, leadership, culture and teamwork
related to innovation and commercialisation:
Organisational vision:
This is a statement describing the organization's future plans. Dyson's
vision is to maintain a leading position in the market through a variety of
innovative products. (Innovative R&D-Case Study, 2020)
Leadership:
Leadership and business: successful business goals and complementary
roles, as well as the standards and even supplier behavior described
below are all ways to conduct business (H Holden Throp and Goldstein,
2016).
The leadership of James Dyson is satisfied with the company's modern
and innovative design. Dyson himself claims to be a "very bad" manager,
and he is interested in working with a group of people to achieve their
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goals and lead them to success. However, incentivize employees to try
more challenging things in the workplace instead of choosing safer
options. This shows Dyson's business goal, which is to become "the
world's first market for the industry's most innovative technology."Dyson is
the leader of the Democratic Party. All of their employees are completely
professional; this means you can agree with their opinions, which is very
motivating because you will receive regular stories about your employees’
work.
Culture:
Dyson’s brilliant achievements can be traced back to the tradition directly
derived from the personality of the founder: solving problems through
creativity and innovation, concentration of learning, lack of self-satisfaction
with product functions and quality, and irreconcilable evolution and
revolutionary spirit (Dyson case study 2020)
Teamwork:
Dyson uses another alternative method for team building. Dyson
engineers can create groups every year, and then only give them 24 hours
to create something. This year’s rapid development challenge requires the
development of a smart device that can be divided into three categories:
connected homes, gamification of Dyson products, and easy-to-use
accessibility. The winning team received an expensive bonus. ( Verizon
Media, 2020).
Analyse the different sources of innovation:
Peter F Drucker the famous the famous inventor of modern management
who identified the following:
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Figure 2
The unexpected
There are many unexpected failures and successes in the business world,
and they can be an important source of inspiration for innovation. When
they inspire leaders to think differently and seize opportunities, they may
have an impact on the business world(Drucker, 1998).
Incongruities
Just like accidents, whether it is success or failure, incompatibility is an
indication of changes that have occurred or possible
improvements(Drucker, 1998)
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Process Need
After carefully reviewing the company's processes and identifying weaknesses
and improvement possibilities, the possibility of innovation will emerge. These
teams will be able to develop more effective and innovative solutions (Drucker,
1998)
Industry and Market Structure Change:
The industry and market structure may remain stable for many years, but as
technology advances, many industries will collapse overnight. Executives need to
track these changes and see them as opportunities rather than threats (Drucker,
1998)).
Demographics
Almost all companies face this problem directly or indirectly. These changes will
affect the market because they determine the demand for the product, the buyer
(culture, age, gender) and how many products are purchased(Drucker, 1998)
Changes in Perception
Due to the influence of technology and social media, perception will change over
time. These changes happen quickly, such as changes related to certain
products, brands, or industries overnight. The adjustment of beliefs has opened
the way for corporate innovation(Drucker, 1998).
New Knowledge
Companies that refuse to develop to be modified by new discoveries are doomed
to fail. However, it is possible to embed new knowledge in every element of the
company(Drucker, 1998)
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All these resources are of great help in ensuring that business organizations
prevent unforeseen disasters and treat falls as lessons that can be learned from
them.
Critically analyse how innovation is developed and embedded:
The products developed by Dyson are very advanced and elegant. Although the
price is too high, they can still occupy an advantage in the market. Dyson does
not compromise on the quality of its products. Dyson’s R&D team is experienced
and professional, so they can reflect your ideas at all stages of development. In
order to install high-quality vacuum cleaners, they used and tested 5127
prototypes and Finally succeeded. Its new technology has applied for a patent.
(Innovation: The Dyson way, 2020)
Dyson uses incremental innovation (also known as market participation
innovation) to improve products, making them more efficient, more acceptable,
and cheaper. It also includes major innovations, also known as technology-driven
innovations, and pays more attention to new technologies. Innovative business
methods and processes so that they can produce proven high-quality and
disruptive products ("Dyson way Innovation", 2020)
Integrated product development includes three important steps: selecting a
hardware platform, selecting a functional system, and extending application
software. These steps can have a significant impact on cost, productivity, product
quality, product consistency and time to market. (Integrated product
development: please follow the following three steps: DRY in progress, 2020).
Dyson also followed all these steps. In addition, Dyson appoints 46 ITDA R&D
teams every year. (Solvino, 2020)
Dyson believes in the importance of customer satisfaction, which is why they try
to maximize customer satisfaction and enhance the brand. As a result, 92% of
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Dyson users recommended Dyson (Dyson Story, 2020) to their family and
friends.
LO2
Different types of innovation
There are 4 types of innovations, which are incremental, disruptive, architectural,
and radical.
Incremental
A series of small improvements to the company’s existing products or services.
These cost-effective improvements differentiate the company from the
competition by building on existing products (Kylliäinen, 2020).
Radical
A new product or service designed to replace an existing product or service.
Radical innovation is dramatically changing the prospects of consumers. The
associated costs and risks need to be cautious (Kylliäinen, 2020).
Disruptive
A technology whose practicality affects the way the market or industry activates.
Take the Internet as an example. It has changed the way companies commercial
operation and has a negative impact on companies that are unwilling to adapt
(disruptive innovation: 2020).
Architectural
It is a redesign of existing product technology, with updates and improvements,
some of which are more combinations than innovative ones (Kylliäinen, 2020).
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