Innovation and Commercialisation: A Report on Marks & Spencer

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INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................2
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................2
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................4
Task 2...............................................................................................................................................6
P3 Explain the 4ps of innovation and explain the use of innovation funnel to examine and
shape innovative ideas.................................................................................................................6
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..................................................................................................................9
Task 3.............................................................................................................................................11
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.....................................11
P6 Build an Innovation Business Case for an organisation, including ways to access funding16
Task 4.............................................................................................................................................18
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property..........................................................................................18
Conclusion.....................................................................................................................................22
References......................................................................................................................................23

LIST OF FIGURES
Figure 1: Innovation benefits...........................................................................................................2
Figure 2: 4ps of innovation..............................................................................................................6
Figure 3: Innovation funnel.............................................................................................................8
Figure 4: Frugal innovation...........................................................................................................10

Introduction
The modern business arena needs to comply with creative and innovative ideas to capture higher
market share and competitiveness within national and international market. In reference to this,
the current study will describe innovation and its significance in Marks & Spencer by comparing
it with invention by explaining firm’s culture, vision, teamwork and leadership that help to create
innovation and commercialisation. It will discuss 4ps of innovation with innovation funnel for
generating creative ideas in firms. Further, frugal innovation developments will be described by
various examples. In addition, commercial will be explained for developing new product process
through innovation business case that helps to arrange and access funds. At last, various tools in
firm is utilised for protecting, developing and retaining innovation rights using intellectual right
of property to secure ownerships and misuse.
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Task 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention
Innovation is determined as method of new idea and plan exploitation that helps in developing
fresh service, product or process. Thinking of new idea for product is not sufficient rather it need
aim to bring in market that provides quality improvement and adding value to existing product.
The organisations in UK are highly appreciated if it follows creative and innovation ideas so that
it helps in retaining consumer base. In similar way, Marks & Spencer is retail firm that regularly
applies innovation in certain timeframe to acquire higher market share and revenues. The firm is
determined as M&S which is British multinational retailer that sells home products, high quality
clothing and food products (Prajogo, 2016). It was incorporated by Thomas Spencer and Michael
Marks in year 1884 with 959 outlets in UK. It employees over 80787 people and earns £10.377
million as its revenues by serving various countries.
Figure 1: Innovation benefits
(Source: Philip Bell, 2017)
Further, the organisation focuses on using regular innovation methods that has helped in boosting
its market share and competitive edge (Visnjic, et.al, 2016). It has taken efforts to research for
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food products and it has adopted method of initiating technical innovation. The innovation
delivery manager states that innovation is source to business growth in which Abbey Sofa plan
has created for 2020 that aims to serve with new fabric and designs. Thus, innovation in firm has
paved huge ways to develop new ideas, fresh products and giving originality that helps in higher
consumer satisfaction. Thus, innovation plays key role in improving productivity,
competitiveness, brand recognition, aims to develop new relationships, reduced cost, higher
turnover etc.
Innovation Importance in Organisation – The retail sector of UK regular faces competition
because UK has number of retail firms that makes competition and market in which survival is
tough (Piperopoulos, 2016). The importance of innovation in business is as follows:
 It dispenses opportunity to business for developing creative ideas with different qualities
that comes from employees with creative skills by providing wider market and potential
to compete against rivals.
 It helps in sustaining the business by creating regular improvements and re-branding and
repackaging by changing methods and process of working. The innovation needs are
identified by business managers that provide opportunity to grow business.
 Using innovation techniques the firm can put and collect all efforts to deal with current
trends and competition of market that makes firm competitive and strong positioned.
Just contrary to innovation, there is term used in business known as invention. Both the terms are
different from each other but has single motive to reach higher goals for firm. Innovation refers
to idea initiation to process new product and invention is determined as idea occurrence that has
not found by any person. Innovation adds value to product while invention creates new product.
The term innovation requires skills such as marketing, strategic and technical nut invention needs
scientific skills. Innovation can be done by anyone in firm but invention is limited to R&D unit.
Thus, innovation and invention both plays essential role in firms like M&S to develop and create
new service (Linder and Williander, 2017).
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P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation
M&S is serving with variety of products to its customers for whom it innovates by using various
ideas captured from various people and departments. Hence, diversity for business innovation is
beneficial that helps in collecting different pool of ideas and viewpoints. Diversity here depicts
that firm has culture, teamwork, vision and leaders that helps in expressing numerous ideas for
specific project or task. Thus, it is important to allow flexible working in firm so that new ideas
can be reached to management and best can be initiated over required space. There are various
ways that helps in collecting ideas from different sources that helps management to reach out for
better conclusion (Dincer, 2017).
The innovation effectiveness can be developed in organisation through its corporate culture that
is essential to maintain by firm. The work for employees requires flexible working culture using
encouragement and group support that positively impacts productive results. The best thing by
positive culture is that employees will be able to express ideas and new methods of conducting
work that can be in innovative form and supports organisational objectives. It requires manager
support so that ideas and innovation can be expressed without fear of failing or terminating that
will provides variety of ideas. Further, the vision of firm is another impact that has on innovative
plans and strategies. The M&S has strong aims and visions due to which employees gets better
satisfaction as quality and price are two aspects for which firm works. Thus, the clear vision and
goals helps in initiating change in effective manner without going through negative culture as the
staff is very much clear about all needs and requirement of customers based on which products
are created and served across the world (Johannessen, 2017).
Leadership plays effective role in practising innovation and commercialisation in firm that aims
on expressing different ideas and methods by innovative leaders to team members that helps in
attaining positive results. Positive approach and behaviour of leaders towards its team and staff
members helps in creating better relationships due to which alternative can be practised without
fearing failure or setbacks. It helps in increasing morale and confidence of employees that helps
in improving productivity. The leaders of firm have better knowledge about position and market
situation based on which innovative ideas are generated and practised. The innovation leaders in
business play vital role as they moves fast, targets inspirational goals and crave information.
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In addition, the creativity in firm is developed and supported by teamwork as single person does
not have ability to think in fresh manner. The use of creative team works according to ideas that
are brainstormed by various employees (Pynnönen, et.al, 2019). It creates different choice with
management to have best and suitable method by which product can be innovated and presented
to market for serving and satisfying customers. The status of leaders gets higher as he aims on
encouraging team to give best ideas for creating better image of firm in competitive market.
Thus, innovation can be done using various people to obtain global success.
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Task 2
P3 Explain the 4ps of innovation and explain the use of innovation funnel to examine and shape
innovative ideas
The creation of different capabilities in innovation management and organisation use of strategic
advantage is necessary. The M&S has best plans and strategies for holding over market by ideas
and techniques of innovation and creativity that plays important role in managing business. It can
focus on initiating 4ps of innovation that helps in boosting consumer base with better generation
of ideas. Thus, the innovation’s 4ps are discussed below:
Product Innovation – It aims on bringing improvements in products and services that is offered
by firm to customers. It helps business to initiate new practises to launch and improve products
and services. Thus, using this strategy M&S can focus on changing packing features to attract
higher customers (Akgun, et.al, 2017).
Figure 2: 4ps of innovation
(Source: Maciej Zastempowski, 2013)
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Position Innovation – It aims on changing surroundings for creating products and services. This
method is followed for changing working criteria, method or process that helps in developing a
firm. The M&S can initiate for its grocery product that might be done by practising change in
ingredients, health measures and price of product (Tidd and Bessant, 2018).
Process Innovation – The delivery of products and service are targeted to be changed. Change in
process might impact on appearances and products created by firm as process gets updated. It
will enhance better functioning and satisfies consumer using advanced ideas and technologies.
For instance, developing innovation in process might increase its cost that will boost product
prices in M&S that will negatively impact buying patterns by consumer.
Paradigm Innovation – The firms are framed on mental models that get changed under process.
The creativity is done using such mental models that helps in achieving global success. Thus, the
M&S can plan non-vegetarian materials to be placed in different unit or section so that consumer
faith and trust towards firm operation can be boosted.
Innovation Funnel
The organisations now-a-days are taking use of innovation funnel for developing innovation and
creativity in products and services (Yun, 2017). It is widely used in R&D departments so that
researches can be done in effective manner with strong ideas that helps in creating better
opportunities for firm to grow at speedy level. This method can be used by M&S so that if one
idea drops another gets ready to perform. The funnel intakes variety of ideas through
investigation and it selects that idea that is left at end of funnel. The funnel has three stages that
satisfy consumer needs by economic and manufacturing situations. This model is further
determined as refined system with following steps:
Step 1 – Funnel Mouth – The stage aims on giving chances to business for creating information
and knowledge base so better innovation can be initiated in products and services. It is important
for firms to conduct researches related to partners, competitors or institutes so that innovation
can be practised on products and services. Thus, creating new product in M&S should be done
using funnel method so to select best people.
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Figure 3: Innovation funnel
(Source: Bert Bredeweg, 2009)
Step 2 – Narrow Funnel Parts – In this stage, the ideas left and selected at end are bought to this
stage for screening in which it must be matched with objectives of business. The matching of all
ideas will state that the plan carries consumer demand and develops strategic positioning (Wang,
2017).
Step 3 – Final Funnel Segment – The new service will be planned by new ideas and creativity.
In this stage, the idea is developed and finalised for introducing in market using best promotion
ideas that is delivered to customers by selecting best channels. Thus, M&S will prepare last to
last product at this stage.
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P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context
Frugal innovation is determined as local phenomenon that is adopted by business for controlling
local needs to develop products that are ignored through mainstream business. The method is
used by firm to create business models, reconfiguring value chains and product redesigning that
helps in creating scalable and sustained business. The resources are given functional solutions
that help in providing important means to firm. The M&S can initiate such idea so that resources
and material can be purchased of low standard or quality that was not selected by top most firms
(Rosca, et.al, 2017). The organisation can take help of frugal innovation for giving bets quality
that can be easily accessed and afforded using following points:
 Creating different ways and methods to develop and design the product.
 Macro level of thought must be used by systems.
 The business models must be changed according to solutions that are easily accessed by
teams.
 Using modern technologies that helps in giving solution that has low cost.
Initiating frugal innovation, organisation can utilise useless and lame products in effective way
so that better profits and revenues can be generated by firms. The benefits in firm are achieved
by increasing demand of frugal products that helps in reducing debt risk (Weyrauch and Herstatt,
2017). The water, climate and water resources aids in giving production and higher consumption
of frugal products. The price of innovation is regularly decreasing that helps in creating higher
demand in firms for creating frugal products using advanced technology. For example – The firm
named Renault developed cars with frills in Romania that has helped in creating cars with low
prices and was affordable to normal people also. It was happened because the labour in Romania
charges low cost for creating goods that helps in saving funds of firm as well as savings of
customers.
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