Business Innovation and Commercialisation Report for Arcadia Group

This report provides a detailed analysis of innovation and commercialization strategies, using Arcadia Group Ltd. as a case study. It explores the importance of innovation for organizational growth, examining how vision, leadership, culture, and teamwork facilitate innovation and commercialization. The report delves into the 4Ps of innovation (Paradigm, Product, Process, and Position) and the application of the innovation funnel. It also investigates frugal innovation and its role in reducing costs and simplifying production processes. Furthermore, the report discusses the significance of the commercial funnel, product development plans, and an innovation business case, including methods for securing funding. Finally, it covers tools for protecting intellectual property and knowledge. The report concludes with a summary of key findings and recommendations for Arcadia Group.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Importance of innovation for organisation ...........................................................................4
P2 How organisational vision, leadership, culture and teamwork help innovation and
commercialisation .....................................................................................................................5
TASK 2............................................................................................................................................7
P3 4Ps of innovation and use of innovation funnel.....................................................................7
P4 Development in frugal innovation.........................................................................................8
TASK 3..........................................................................................................................................10
P5 Importance of commercial funnel and product development plan for commercialising
innovation..................................................................................................................................10
P6 Innovation business case with ways of assessing funds......................................................12
TASK 4..........................................................................................................................................12
P7 Tools used for protecting knowledge and intellectual property...........................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation means germination of new idea that has to be translated into a good or service
which can satisfy new requirements of customers. Through the way of innovation already
existing processes in an organisation are developed so that their efficiency improves, customers
are satisfied in a better way and profitability of organisation increases (Bain and Kleinknecht,
2016). Innovation and commercialisation of new ideas are important for the growth and
development of a business so that competitive advantage can be achieved. This report is based on
Arcadia Group Ltd. which is a British multinational company and basically deals in clothing
retail sector. The company has its headquarters in London, UK. The group has more than 2,500
outlets in UK and many franchises in other countries. This report will cover the importance of
innovation in an organisation, the 4Ps of innovation, the importance of commercial funnel and
application of new product development. Further an innovation business case is discussed along
with ways of accessing funds.
TASK 1
P1 Importance of innovation for organisation
Innovation is a process or activity of acquiring and translating novel ideas, thoughts into
into existing products and service which lead an organisation to catalyst the growth and
development in an effective manner. Moreover, it is regarded as one of the significant
component in company as it help them to capture attention of large number of customer as well
as to obtain best position within competing industry (Biemans, 2018). Hence, the concept of
innovation render several benefits to firm like enhancing productivity, providing better decisions,
marketing business , coping up with competitors and so on. However, Moreover, they also must
be adaptive and flexible nature so that they can easily acquire any sort of changes or
modification for the enhancement of company in an innovative manner. In regard of Arcadia, the
aspect of innovation empower its manager to determine enormous opportunity and also to render
best solution for upcoming challenges and issues in an improved way. Thus, some of the
importance of innovation within Arcadia company are discussed below:
Satisfying customer need: The concept of innovation enable an organisation to examine
the marketing demand as well as customer preference which lead them to produce relevant

product for obtaining increased level of customer satisfaction. In relation to Arcadia, innovation
help its manager to fulfil the requirements of targeted customer by rendering high quality goods.
Acquiring competitive advantage: The another feature which innovation provide to
company is that it make firm more competitive as well as empower them to cope up with all
upcoming challenge or threat in a better manner (Castaldi, 2018). Therefore, with the adoption of
innovation Arcadia's superior can examine industrial trend and also help them to implement best
corrective course of action in order to gain competitive advantage in a stipulated period of time.
Invention: The term invention refers to those process which is concern with designing or
creating new products or service into marketplace. Henceforth, for attaining sustainable
profitability, a manager should take an initiative to identify the current or upcoming market trend
and also implement best strategic decision which lead them to attain increased level of
productivity.
Additionally, comparison between innovation and invention in context of innovation
which is are as follows:
Basis Invention Innovation
Meaning Invention is relate with those concept
which states that the product or
service has been introduce within
market for the first time.
Innovation means developing and
implementing novel ideas or views for
the enhancement of existing product or
service in a innovative manner.
Skills required Under this, invention is combination
of scientific skill or abilities for which
it require experimental knowledge
and cognition.
Innovation encompasses technical,
marketing and strategic skills.
Occurrence The concept of invention take place
when a novel ideas strikes the mind
of scientist which signifies that it does
not occurs on the basis of product's
position in industry.
On the other hand, innovation occur
when a manager feels to enrich the
features of existing product for
attaining sustainable proficiency ratio.
Activities Invention process is only limited to
R&D departments as it wholly based
Innovation not only restricted to one
division rather it impact every

on research for specific product. functional unit of organisation.
Henceforth, to survive within marketplace for longer period of time, innovation and
invention enable Arcadia manager to acquire best position within competitive industry in an
effectual way.
P2 How organisational vision, leadership, culture and teamwork help innovation and
commercialisation
In an organisation, there are various factors or function like leadership, culture, vision
and many more which plays a vital role in accomplishing the pre determined goal or objective in
a prescribed time limit without nay hindrances (Desai, 2015). Moreover, amalgamation of these
factors assist employer and employee to perform all business activities in a collaborative and
cooperative manner for gaining improved proficiency ratio. Hence, in relation to Arcadia
company, some of the elements which firm's manager requires for achieving business objective
in a better way are as follows:
Vision: This vision statement act as a short term and long term goal for company which
they desire to accomplish in future period of time. Mover, it is generated and developed by
manager and also empower them to provide guidance to its subordinate in achieving the same in
an trenchant and expeditious mode. In context of Arcadia Group, its foremost vision is to render
high and best quality of products and to become one of the leading company in UK retail
industry.
Leadership: It is an ability of an individual to inspire, encourage or motivate followers
towards an attainment of desired goal or objective (Fang, Lee and Yang, 2015). In context of
Arcadia Group, it's leader implies democratic leadership style which help them to provide equal
opportunity for employees as well as motivating them to participate in business activities. Due to
this, it aid Arcadia leader to maintain better relationship with subordinates and also to improve
firm's overall performance in a better way.
Culture: This phase is a combination of values, norms, beliefs, attitude of different
customers towards organisation and its product. In regard of Arcadia Group, its manager always
make effort to introduce products based on customer taste or preference which help them to
eradicate the issue of cultural differences among targeted population.
Teamwork: This element refer to those state in which two or more personnel come
together with aim of accomplishing common goal in an impressive mode. In case of Arcadia

Group, its superior takes an initiative to forming a team as well as delegating the task in equal
manner so that they can achieve their goal without any obstacle or conflict.
Therefore, the above explained elements assist Arcadia's manager to maintain its working
culture in a best manner by implying appropriate leadership and teamwork. Due to this, company
can accomplish its per determined vision in a effective manner.
Sources of innovation to foster innovation environment and culture
For gaining competitive advantage, there are different types of innovation sources which
lead company to obtain profit maximisation. Some of them are building effective team,
developing a culture of innovation, fair reward system,recognising the effort of staff and many
more (Jamali, 2017). With the help of this, Arcadia company can gain competitive advantage as
well as can acquire sustainable profit margin ratio.
TASK 2
P3 The 4Ps of innovation and use of innovation funnel
Innovation plays an important role in the growth and development of an organisation in
competitive market. The innovation mix or 4Ps model was developed by John Bessant and Joe
Todd to help an organisation in identify the innovation that can be brought in an organisation.
The 4Ps of innovation regarding Arcadia group Ltd. is given below : Paradigm : This is related with introducing an innovation in the way in which an
organisation can do its business like changing the business model (Kang and et. al.,
2016). For example Arcadia can deal with its customers through social media platforms. Product : This is related to introducing changes in the products and services offered by
an organisation which can be done either by improving the existing products or by
offering new and better products. For example Arcadia can diversify in non-branded
products so as to reach medium class society. Process : This is treated to all the activities that take place in an organisation like the
preparation processes of products and services, their distribution, hiring of employees in
an organisation etc. These activities can be improved by Arcadia so as to increase its
profits.
 Position : It is related with the market position of an organisation regarding the products
and services offered by it along with their value with respect to the customers. This can

help Arcadia in determining its position so that innovation can be brought to improve its
position in the market.
Innovation funnel
It is process that is used by businesses so that innovations can be created with a realistic
action plan so as to develop such goods and services that can satisfy the needs and wants of
customers. Innovation funnel describes the steps that take place in developing a process or a
product.
Source : Innovation Funnel Management .2019 Idea management : It includes germination of an idea and the evaluation of it depending
on its viability and potential profits associated with the execution of the idea. Development of project : A project methodology is developed with a detailed project
plan that can help in setting out the goals and objectives that are to be achieved. Protection and exploitation : The ideas needs to be implemented in the market so that
profitable returns can be gained by the organisation (Manzini and Lazzarotti, 2016). Market introduction : It is related to identifying the target markets, develop marketing
strategies and sales plan, obtaining funds for market introduction and expansion and
establishing production, supply chain, customer support etc.
 Results : The results can be evaluated by determining the profit growth rate after the
implementation of innovation in the products and services in the market.
Illustration 1: Innovation Funnel Management .2019

P4 Development in frugal innovation
This process is related with reducing the complexity and cost of production of a product
or service by removing the non-essential features from a product that will reduce the cost of the
product and can help in increasing the sales of the organisation. It can help an organisation in
simplifying the process of production and reduction in their costs. Arcadia can use this process in
the following manner :
Illustration 2: Frugal Innovation .2019
Source : Frugal Innovation .2019 Seek opportunities in adversity : This means taking the advantage of the opportunities
that are available in the market so that competitive advantage can be achieved over other
rivalries in the same industry (Meissner, Polt and Vonortas, 2017). Arcadia can get rid of
its old stock of clothes first by offering discounts to their customers so that the storage
cost of old items can be reduced and also the sales can be increased. Do more with less : It means identifying ways in which better solutions can be found for
dealing with a problem. For example Arcadia can use online platforms for reaching a
large customer base that will improve the way in which marketing can be done efficiently
to reach a large customer base. Think and act flexibly : This criteria is important to involve in the management process
of a business so that the policies and strategies can be changed with respect to the
changing environment and changing demands of customers. This process can help
Arcadia in improving its business processes and introducing innovations in the business
activities so that customer satisfaction and competitive advantage can be achieved.

 Keep simple : This means keeping the strategies simple by the management so that its
application can be made easier for the employees of organisation which can help in
achieving its goals (Su and et. al., 2017). Arcadia can make the policies simple, clear and
easy to understand by the employees so that customer's needs and wants can be dealt with
appropriately.
 Follow your heart : It means that if the manager thinks that the innovation can bring a
change in the society and help in dealing with the customer problems efficiently, then
such innovation must be implemented in the organisation.
TASK 3
P5 Importance of commercial funnel and product development plan for commercialising
innovation
Commercial funnel helps the management focus on converting the prospects into
customers in the target market along with developing leads so that more customers can be
attracted towards the company products and services. This helps in enhancing the profitability of
the company by increasing sales (Tuli and Shankar, 2015). An innovation brought by the
company can be made available to the large customer base by improving their commercial funnel
so that needs and wants of customers can be satisfied.
In order to stay successful in the market businesses need to introduce new products and
services or bring improvements in them so that a competitive edge can be achieved. New product
development includes following stages : Idea generation : It is related with systematic search for new ideas. This can be done by
brainstorming exercises of the employees or can be done through the research and
development teams of the company. Idea screening : It means filtering various ideas generated through the first step so that
the best among all the ideas can be selected. This is an important step as product
development is a costly process so best idea needs to be adopted.
 Concept development and testing : It means the attractive ideas must be developed and
tested so that the results so gained can be evaluated to select the best possible concept of
new product development.

Illustration 3: THE NEW
PRODUCT DEVELOPMENT
PROCESS (NPD) .2015
Source : THE NEW PRODUCT DEVELOPMENT PROCESS (NPD) .2015 Marketing strategy development : When a good product concept has been developed and
tested, marketing strategy needs to be developed to introduce the new product in the
market. It involves deciding target market, applying marketing-mix etc. Business analysis : It means forecasting the sales, cost and profits associated with the
product and analysing whether the new product is able to satisfy the customer needs and
wants. It also involves assessing the risks involved so that the product can be moved to
product development stage. Product development : The products that are introduced in the market are often tested so
that their performance can be made efficient to satisfy the customers. This will help in
continuously improving the product.
 Test marketing : At this stage the product and its proposed marketing plan and strategies
are tested in the real market before introducing and expanding the products full fledged.
 Commercialisation : It means launching the product in the market and marketing it so
that more customers can be attracted to purchase the product.

P6 Innovation business case with ways of assessing funds
Innovative business case is a written document which gives detail on the reasons behind
introducing innovation. This helps the businesses in fully evaluating the viability of the project
and the potential profits related to it so that appropriate decisions can be made to implement the
innovation successfully and gain maximum profits out of it (Weisburd and Braga, 2019).
Business case for Arcadia for introducing non-branded fashionable clothings is as follows : Summary : Arcadia Group Ltd. is a multinational company based in London, UK and
deals in retail sector and owns the high street clothing retailers Burton, Dorothy, Topshop
etc. Objectives : To increase the market base and reach to large number of customers. Solution : This can be done by providing non-branded fashion clothing so that medium
and low class customers can be targeted. Innovation in products : The social media platform can be used by the company to
spread awareness about the new innovative idea of introducing non-branded products in
its stores at low costs. Research : Arcadia needs to conduct an extensive research so that target market can be
selected and appropriate marketing mix can be applied. Funding : It is involved with arranging funds so that the innovation can be successfully
implemented. The various ways of raising funds are bank loans, investors, stakeholders,
financial institutions etc.
 Benefits : This contains the evaluation of the benefits that Arcadia will get on introducing
their innovative strategy in the market so that the implementation can be made more
effective.
TASK 4
P7 Tools used for protecting knowledge and intellectual property
Protection of the new and innovative ideas, techniques, knowledge is important for an
organisation so that these cannot be imitated by their competitors. The innovations brought by
organisations help them in gaining an competitive edge in the market by being the first to fulfil
the new requirements of customers. This helps them in continuously producing unique products

by protecting their processes, methods and tools used in their production. Following are the ways
in which this can be done : Patents : This gives legal rights or licence to the organisations who have invented new
products or services for the use of customers. This prevents the use, selling or replicating
the inventions by other organisations. These patents are given for a set period of time and
are to be renewed (Yam and Chan, 2015). Copyright : It is an exclusive right given to a person who has created a creative work in
literature, art, music etc. This right helps the person in reproducing their work again and
again over a specified time period.
 Trademark : It is a recognizable sign that gives the company products and services a
unique identity which can help the customers in differentiating them from other company
products.
Arcadia can use trademark so that its products can be differentiated from other company
products working in retail industry which gives it a unique identity in the market.
CONCLUSION
From the above report it can be concluded that innovation is an important part of an
organisation which can help in its growth and development in the highly competitive market so
that the changing needs and wants of customers can be met by the organisation. This also helps
in improving the efficiency of the organisation which increases its sales and profits. A business
plan for innovation along with following the steps involved in new product development can
help an organisation in successfully bringing a desired innovative change in the market.