Unit 8: Innovation and Commercialisation Report: Jaguar Land Rover

This report provides a detailed analysis of innovation and commercialization strategies within Jaguar Land Rover (JLR). It explores the context of innovation, differentiating between invention and innovation, and highlighting the importance of leadership, culture, teamwork, and vision in fostering a co...Read More

UNIT 8 INNOVATION AND COMMERCIALISATION
21/11/2018

Table of Contents
Introduction........................................................................................................................4
LO1. Explain the context for innovation and determine the difference between invention
and innovation...................................................................................................................4
P1. Concept of innovation and its importance in comparison with invention.................4
P2. Role of leadership, culture, teamwork, and vision of organization in incorporation
of commercialism and innovation...................................................................................5
LO2. Explain the different types of innovation...................................................................6
P3. 4Ps and use of innovation funnel for examining and shaping innovative ideas......6
P4. Discussion on development and use of frugal innovation.......................................7
LO3. Discuss the process required to commercialize innovation.....................................8
P5. Significance of commercial funnel and use of new product development
processing......................................................................................................................8
P6. Development of innovation business case..............................................................9
LO4. Evaluate the range of methods for protecting ideas and understand their
advantages and disadvantages.......................................................................................10
P7. Tools for developing, retaining and protecting intellectual property and knowledge
......................................................................................................................................10
Conclusion.......................................................................................................................10
Reference list:..................................................................................................................12
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Introduction
Incorporation of innovation provides opportunity to organizations meet expectation of
customers and this aspect leads to maximization of financial profit. This study focuses
on importance of innovation in Jaguar Land Rover Company that can help this company
to get more financial benefit from their business. Rivals of this firm are developing new
products to attract customers towards their business. This firm needs to maintain
consistency in incorporation of innovation in their business. Appropriate leadership
style, visions, and organizational culture must be developed within Jaguar Land Rover
to support successful implementation of innovation within business. This study focuses
on importance of innovation in Jaguar Land Rover Company that can help this company
to get more financial benefit from their business. Rivals of this firm are developing new
products to attract customers towards their business. This report has mentioned that
this firm needs to maintain consistency in incorporation of innovation in their business.
This company considers frugal innovation and new product development process to
ensure success even in difficult situations. Innovation funnel of this organization is
helping them to assess effectiveness of their innovative approach. Commercial funnel
has been developed by this company to commercialize their innovative products. A
business case has been developed and tools that support knowledge, as well as
intellectual property, are discussed to shed lights on innovative approach of this
organization. Conclusion part has been developed based on discussion of entire study.
LO1. Explain the context for innovation and determine the difference between
invention and innovation.
P1. Concept of innovation and its importance in comparison with invention
Innovation is considered as a process implement new ideas for development of
products and organizations implement innovation in their business in order to meet
expectation of their customers. On another hand, Burnett (2017) has mentioned that
invention refers to having an idea for development of a unique product. Innovation helps
to modify existing models of products and invention supports creation of new products
to obtain customer satisfaction. It can be noticed that invention is considered as a
working theory. Practical incorporation of new ideas in business is termed as innovation.
Organization like Jaguar Land Rover invests their time and cost in market research to
understand market demand for innovative products. According to Hashmi and
Biesebroeck (2016), the concept of innovation is concerned with obtaining knowledge
from combinations of different processes and products. However, invention is
considered as a scientific approach and it can lead to development of a single product
by implementing a single unique idea. Jaguar Land Rover has many rivals and they are
implementing innovative ideas in their business. This aspect can prevent Jaguar from
achieving maximum competitive advantages from their business. Due to this reason,
this organization is bound to focus on incorporation of innovation in their business.
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Innovation is an important part of business as supports organizations to attract
maximum number of customers towards their business. Jaguar Land Rover is renowned
for their innovativeness and they need to maintain this trend to meet expectation of
customers (Jaguarlandrover.com, 2018). Incorporation of innovation provides
opportunity to firms like Jaguar Land Rover to include features within their existing car
models to provide good experience to their customers. As opined by Kushwaha and
Sharma (2016), invention is limited to research and development department of a
company and innovation can be taken into account for all departments of organization.
Due to this reason, it can be stated that innovation is more important for an automobile
company like Jaguar Land Rover than invention. As mentioned by Rawlinson and Wells
(2016), successful implementation of innovation can help to make changes in the
organizational culture to improve business performance. Organizations like Jaguar Land
Rover required thinking out of the box to modify existing models of cars and this
approach has the capability to attract more customers towards their business.
Employees must be motivated to think out of the box to contribute to growth of firm.
Jaguar Land Rover has realized this fact and they have planned different innovative
products like Jaguar I-pace and Iconic Land Rover Defender to attract more customers
towards their business and this approach is capable to help this firm to earn more
competitive advantages from business.
P2. Role of leadership, culture, teamwork, and vision of organization in
incorporation of commercialism and innovation
Leadership styles, teamwork, culture, and vision of companies support implementation
of innovation in business. Leaders of Jaguar are concerned with market demand and
they have the capability to maintain innovation within their business. As opined by
Zacher and Rosing (2015), leaders are liable to trust their own abilities as it helps to
trust others. They need to trust the capabilities of employees within this business. Rivals
of this firm are launching innovative products in the automobile market of UK and
leaders of Jaguar Land Rover are aware of this fact. It is the responsibility of leaders to
encourage employees to work in teams. As suggested by Kazmi (2017), combination of
thought process of different employees can help leaders to ensure implementation of
innovation in product development as per market demand. Leaders of this firm
communicate with employees and provide opportunities for them to share their own
opinions. This aspect helps to generate innovative ideas for improvement of business
process. Organizations like Jaguar Land are ensuring commercialization with the help of
their innovative approach.
Vision of organizations supports them to incorporate innovation into business. Vision of
Jaguar Land Rover explains that this firm is dedicated to innovation
(Jaguarlandrover.com, 2018). They want to foster an appropriate working environment
for their employees to motivate them to develop a good relationship in order to ensure
generation of innovative idea. This firm has been aimed to maintain transparency within
their business to make employees understand the importance of implementation of
innovation. However, Castillod (2016) has suggested that this firm need to make their
employees understand their vision to incorporate innovation in business. Employees
need to understand vision of organization to explore their innovativeness and this
approach of employees can lead to commercialization of business as more financial
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benefit can be obtained with the help of innovation. Leaders can help in this regard as
they are able to provide guidance to employees to help them to choose right direction
for implementation of innovation within business.
Organizational culture is considered helpful in shaping of innovation as well as
commercialism. Jaguar Land Rover provide appropriate working environment to their
employees to encourage them in sharing of knowledge and opinion
(Jaguarlandrover.com, 2018). Leaders will need to provide clear concept of innovation
and process of implementation of innovation to employees. This aspect is capable to
help employees to select the right direction towards innovation. As mentioned by
Mondéjar-Jiménez et al. (2015), good organizational culture helps employees to
understand common framework of projects. Good organizational culture of this firm
provides psychological safety to their employees. Incorporation of innovation is a risky
process and employees must be asked to feel comfortable to share their views.
According to Dodgson (2018), organizational culture that blames and punishes
employees after failure of innovation in business has less chance to obtain cooperation
from the side of employees in near future in this regard. Teamwork within organization
provides opportunity to employees to share their opinion and this aspect leads to
generation of innovative ideas. As stated by Calabrese (2016), leaders and managers
can provide training to employees to improve team working skills in them. Innovation
can be implemented in Jaguar Land Rover Company, with the help of collaborative
support of all internal stakeholders of business. Changes in revenue generation can be
monitored after implementation of innovation in business as this aspect can help this
firm to measure effectiveness of implemented innovation of their business.
LO2. Explain the different types of innovation.
P3. 4Ps and use of innovation funnel for examining and shaping innovative ideas
4Ps of innovation includes innovation of paradigm, product, process, and position. As
opined by Kalaignanam, K., Kushwaha, and Swartz (2017), making changes in
business process through innovation is considered as innovation of paradigm. Mental
models that have the capabilities to shape the purpose of business are closely related
to innovation of paradigm. For example, Jaguar Land Rover can invest more in offline
promotion than digital promotions to attract mode consumers towards their innovative
products. According to Levidow et al. (2016), innovation of product refers to making of
modification in existing products to improve efficiency. Team members of Jaguar Land
Rover need to identify specific facilities that can be implemented in models of their car.
It is essential to consider that identified facilities are capable to provide better
experience to customers of this firm. Implementation of positive changes within different
business activities is considered an innovation of process. For example, improvement in
the process of maintaining workflow, providing training, managing supply chain and
another process of business of Jaguar Land Rover can be considered an innovation of
process. As suggested by Galankashi, Helmi and Hashemzahi (2016), it is important to
understand perspective of all stakeholders towards products and services of
organization to ensure innovation in position. In this case, context of framing products
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as well as services is changed in order to satisfy needs of all stakeholders within
business.
Innovation funnel helps to provide a description of all steps that are taken into
consideration in order to produce a product. Use of innovation funnel helps
organizations like Jaguar Land Rover to create innovative models of product as per the
demand of customers. As mentioned by Drauz (2014), this approach helps to increase
generation of profit from business. Three major steps need to be considered to develop
innovation funnel within organization. At first, it is important for organization to gather
relevant information about chosen area. Collection of ideas that can support innovation
helps to develop efficient innovation funnel. For example, if Jaguar Land Rover wants to
create an innovation funnel for an improved model of car, at first, they need to conduct
research for collecting all relevant information regarding that project. As per the second
step, organizations must include screening (Hakansson, 2015). It means collected
ideas, as well as information, must be matched with the predetermined goals.
Organizations like Jaguar Land Rover need to evaluate potential risks and possibilities
of return before allocation of resources. As suggested by Gopalakrishnan et al. (2015),
resources must be allocated by this firm to most appropriate opportunities. In the third
stage of development of innovation funnel, organizations need to make sure that their
decision is meeting the key objectives of their company. For example, in this stage,
management team of Jaguar Land Rover needs to check that whether their initiative
towards innovation is capable to meet key objectives of their business or not. After that,
this organization will be able to launch their new products into an existing marketplace
to earn more competitive benefits from business. After development of innovation
funnel, this firm can measure effectiveness of their upcoming projects like Jaguar I-pace
and Iconic Land Rover Defender.
P4. Discussion on development and use of frugal innovation
The concept of frugal innovations postulates the consideration of constraints of
business while generating innovative ideas. Organizations face different limitations
regarding both financial and non-financial resources. They must use their limitations in a
different way to ensure generation of innovative ideas for betterment of business
performance. As opined by Saha, Dahiya, and Sarkar (2016), this kind of innovation is
based on constraints and it can be termed as reverse innovation as well. Organizations
use frugal innovation to ensure more benefit from business in all situations. For
example, implementation of updated technology in car models can help Jaguar Land
Rover to reduce cost of production and this aspect leads to high income from the
product. The main purpose of frugal innovation is to develop a clever solution that can
help company to make a profit in difficult situations as well from their business.
Implementation of new technology in car models can help Jaguar Land Rover to set
more than 50% less price for those cars and they will be able to serve near about 70%
more efficiency buy this method. This approach can help this firm to attract more
customers to their business even at the recession. This firm will be able to earn more
competitive advantages from business with the help of their frugal innovation. In
accordance with Tiwari, Kalogerakis and Herstatt (2014) it can be stated that Accessible
and affordable solutions are generated with the help of frugal innovation. Jaguar Land
Rover is taking initiatives to implement frugal innovation in their business. For example,
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they have undertaken a project of developing Jaguar I-pace and they are expecting that
they will be able to launch this new product in the financial year 2020-2021
(Businesstoday.in, 2018). This model of car has been designed in an innovative way
that use consumes fewer resources than any other models of this form. According to
Tiwari and Prabhu (2018), it can be stated that this kind of projects is the result of
successful implementation of frugal innovation in business. This kind of projects can
help to beat competitors and organization earns more financial benefit by satisfying
needs of customers.
Frugal innovation plays important role in betterment of business performance mad helps
organizations to achieve business goals within minimum time period. Large
organizations like Jaguar Land Rover face difficult times due to failure of business
strategy, increasing competitors, increasing rate of substitute products and many other
factors (Jaguarlandrover.com, 2018). In that kind of situation, organizations think about
frugal innovation to improve their business performance.
LO3. Discuss the process required to commercialize innovation.
P5. Significance of commercial funnel and use of new product development
processing
Commercial funnel refers to visual representation of journey of a customer while
purchasing a product. As opined by Genç and Di Benedetto (2015), this funnel is
considered as marketing funnel and this funnel postulates the number of potential
customers and actual customers. According to the concept of commercial funnel,
organizations expect a large number of potential customers and in the end, they found a
relatively smaller number of actual customer impractical. Commercial funnel consists of
different phases like awareness, interest, decision, and action. In the awareness stage
of commercial funnel, customers face problems and try searching solutions to mitigate
identified problem. As mentioned by Gutierrez-Gutierrez, Barrales-Molina and Kaynak
(2018) customers come to know about offers of products and services from the
promotion of manufacture. For example, customers, who desire to buy a car with
innovative feature, come to know about new product of Jaguar Land Rover. The next
stage is called interest and customers show interest in purchasing in this stage. In this
stage, customers will communicate with representatives of Jaguar Land Rover and will
ask for more information regarding their new model of car. Possibilities of sale increase
in this stage of commercial funnel. The next stage is decision and customers began to
evaluate gathered information about product to make good decision. Customers of
Jaguar Land Rover assess gather information about features of car to make a good as
well as affordable choice. According to Cooper (2016), at the last stage of funnel,
customers take action and make the decision of purchasing the desired products from
manufacturers.
New product development process (NPD) refers to association of different stages that a
new product of a firm goes through before launching in marketplace. At first, generation
of new idea takes place and management of firms screens the new idea. Potentiality of
market, design of product and technical feasibility are considered to define concepts
(Dodgson, 2018). After that, manufacturer like Jaguar Land Rover matches innovative
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idea with existing business strategy. In the next stage of this process, new product is
developed and modifications in the design take place according to the needs of
customers. After that manufacturers set product price and use their marketing strategy
to promote their products. After promotion, a new model of product is launched in the
market by manufacturer.
P6. Development of innovation business case
Project: Jaguar I-PACE
● Business needs
Jaguar Land Rover is one of the leading car manufacturers in UK and they are gaining
more revenue each year with the help of implementation of innovative ideas.
Management of this firm has realized that competitors of this firm are developing
innovative car models to meet expectation of customers. It is important for this firm to
take this kind of projects in consideration to earn more competitive advantages from
business.
● Scope of the project
The model of this car has been designed with highly efficient technologies and this
model is capable to satisfy needs to customers. Advanced technology, beautiful display,
smooth control of this car has the ability to attract more customers towards this product.
Jaguar Land Rover can earn more competitive advantages with the help of this
innovative project.
● Background of project
Jaguar Land Rover has developed their vision to support continuous innovativeness as
this aspect helps them to meet expectation of their customers. This project has been
designed to continue the trend of being innovative.
● Key stakeholders of project
CEO, Research and development team, managers, marketing team, engineers and
labors are an important part of this project. Management team has conducted research
to understand customer demand and engineers have developed the design of this
model. Leaders will lead workforce to complete this project.
● Risk management
Management team of Jaguar Land Rover is predicting possible risks that can affect
success of this project. Technological issues can take place and team of engineers is
developing back up plan to mitigate this issue. Marketing team is developing a
marketing strategy to attract more customers towards this product.
● Budget of project
Activities Expense (£)
Raw material 20000
IT cost 8000
Marketing expense 7000
Manufacturing cost 25000
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Total 60000
Table 1: Budget of project Jaguar I-PACE
(Source: Created by Author)
● Recommendation
It is recommended that this firm need to ask their customers to review features of this
model and provide feedback. This approach of this firm will help to identify areas of
development and number of potential risks will be decreased. Practical tests must be
performed to evaluate efficiency of their car before launching it to the market.
There are many different of ways of access funding such as which is given below:
1. Boost trapping is a way in which our own financial resources are used such as
savings account etc.
2. Friends and families help in providing additional funds for the growing business
needs with an understanding that money will be returned.
3. Crowd funding help in getting from a pool of small investors in the early stages of
the business where you are not qualified for a bank loan.
4. There are some angel investors who help in investing in their business in
exchange of convertible debt
5. There is also a facility of getting bank loans for long term by giving monthly
interest and guarantee.
LO4. Evaluate the range of methods for protecting ideas and understand their
advantages and disadvantages.
P7. Tools for developing, retaining and protecting intellectual property and
knowledge
Research and development department of manufacturing organizations like Jaguar
Land Rover is concerned with development, retention, and protection of intellectual
property and knowledge. According to Calabrese (2016), knowledge and intellectual
properties are considered as tangible resources of organizations. Knowledge can be
developed by analyzing information related to project. Jaguar has taken initiative to offer
an efficient electric sports car to their clients and they have developed the project
Jaguar I-PACE in order to do so. They can use artificial intelligence to develop
knowledge. Internet can be used to conduct research to understand demand of
technologies in market. Leaders of this organization must provide training to their
employees regarding protection of knowledge. Leaders need to make employees
understand importance of intellectual properties. As this firm is developing a new model
of car, they need to take patent of this model. As stated by Galankashi, Helmi and
Hashemzahi (2016), patent documents include information about project details and this
aspect helps to maintain confidentiality of data regarding this kind of projects. According
to European Patent Office, more than 70% of contents of patent remain undisclosed to
the world (Drauz, 2014). It means, people cannot access a particular patent document
without taking consent of the owner. In-depth information about project includes in the
patent document and one must go through the patent document to reduce cost of
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research and development. This organization is releasing facilities of their new projects
to attract more customers towards their project. However, they will not share production
cost and confidential data of this project. One needs to buy the patent of this product
from the company to obtain a clear view of confidential information about this project.
Patents
Patent is given for a particular period of time so that the person can has right over his
things. This right is given by the government so that the particular thing is the person’s
rights.
Copyrights
It is one of the intellectual property rights provided by the government so that the
company can has right on its original work. These are fixed rights and tangible in nature.
Trademarks
Trademarks are not like copyrights or patents as they do not expire after a period of
year. It lasts forever and continues to indicate the source. Its registration lasts forever.
Conclusion
From the above discussion, it can be concluded that innovation is the key to achieve
success and manufacturers like Jaguar Land Rover are developing innovative products
to satisfy needs of their customers. This study has mentioned that invention is different
from innovation and companies prefer to incorporate innovation more than invention.
Leaders play an important role to ensure innovation within organization. Good
organizational culture supports team working and it helps to mitigate risks related to
incorporation of innovation within business. This chosen organization has explained that
they want to support continuous innovation through their clear as well as well-developed
vision. This company considers frugal innovation and new product development process
to ensure success even in difficult situations. Innovation funnel of this organization is
helping them to assess effectiveness of their innovative approach. Commercial funnel
has been developed by this company to commercialize their innovative products. A
business case has been developed and tools that support knowledge, as well as
intellectual property, are discussed to shed lights on innovative approach of this
organization.
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